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Also would be interested to hear your opinions about USDJPY and the fundamentals and technicals behind it. |
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Well, my views on this instrument might not sit in harmony with yours, we all trade from different landscapes & angles etc.
I'm short this pair on one account/strategy & flip to 2 way (long & short) on another a/c dependant on the short term flows.
I & my buddies here are firm believers in keeping the fundamentals & technicals in real close company when trading currencies, which doesn't suit a lot of retail traders outlook. I guess it depends on how you view trading?
Some fella's rely exclusively on technicals, others place a large emphasis on mech system triggers etc. I guess whatever gets the job done.
Again, it might help you some if you bed yourself into a simple educational course similar to the one I mentioned above?
Get a basic grasp of what turns these instruments on & tickles their bellies?
If you then wish to major on one particular sector (fundaments/technicals), then move up a gear & hit the gas.
Technically, 109 to 111.50 places this pair in strong range territory. This zone (109.0) is the 2006 low, therefore likely to extract a little nervous energy from both camps.
It will certainly be a very strong radar for Yen Bulls (short) if it begins to stutter around here.
Yen Bears need to start building a sturdy base between current lows (107.20-50) & 109.0 in the form of higher lows/ + a range structure to encourage accumulation & demand on trips back.
This type of activity (base building) can be a decent intraday play as both camps attempt to assert their authority.
The big money is then made once prices have a guage in which to bounce from. Once these floors/ceilings gain substance, you can use them as barometers from which to compound into positions from your slightly larger (big hourly) timeframes.
But they require testing first. Until they justify building a core position - they can be traded from the short-term strategy play as aggressively as you wish!